Canara Bank

Canara Bank offers a variety of Loans to its customers including Education Loan (Vidyasagar Educational Loan). These Loans are also provided for study in foreign countries for job oriented courses at degree level and advanced studies in all areas for post-graduation. Through its exciting and highly effective schemes, the bank aim at covering all the expense pertaining to education of a student in India and abroad.

The Loan covers:
School or college tuition fee
Expenses for books, hostel, examination and others
Travel Expenses in case of study in abroad, etc.

The amount is directly submitted to University/College/Hostel/book supplier/ etc.

Eligibility:
Need based finance is permitted within a maximum of Rs.7.50 lakhs for inland study and Rs.15 lakhs for study abroad.
Institutions offering courses should have approval of Central Govt. & State Govt./University affiliation/Autonomous Institutes/AICTE/DOEACC.

Margin:
Upto Rs.4.00 Lacs: Nil for both inland and Foreign Studies
Above Rs.4.00 Lacs: 5% for inland studies 15% for studies abroad

Interest Rate:
(1) Student satisfying DRI norms (irrespective of quantum of loan)
(DRI:annual income less than Rs. 7200 p.a.) 4.00%
(2) Others - Upto Rs.4 lakhs
Above Rs.4 lakhs 11.75%-12.75%

Security :
Loan is given jointly to the student and parent /guardian.
Assignment of future income of the student.
Upto Rs.4.00 lacs - No security
Above Rs.4.00 lacs upto Rs. 7.50 lacs - Satisfactory third party guarantee.
Above Rs. 7.50 lakhs: Collateral security equal to 100% of the loan amount.

Repayment Conditions:
To be repaid in 5 to 7 years.
Initial repayment holiday of One year both for principal & interest from the date of completion of course or six months of getting a job whichever is earlier.
Interest will be debited quarterly on simple basis during the repayment holiday/moratorium period. After commencement of repayment,the accrued interest is added to the principal amount and EMIs fixed on total outstanding amount.
Penal Interest @ 2% will be charged for above 2.00 Lacs for the overdue amount and overdue period.

For processing fees, prepayment penalty, documentation charges, mortgage and other charges, please visit the bank website www.canarabank.com